Unionism, Price-Cost Margins, and the Return to Capital

This paper examines available industry data on two profitability measures, the price-cost margin and the ratio of quasi-rents to capital, for the purpose of determining the effect of unionism on profits. It finds that unionism reduces profitability and that this effect occurs in highly concentrated industries. The effect of unionism is quite substantial in most calculations, suggesting that the fraction organized in a sector be included in standard Industrial Organization profitability calculations in the future.

The Effect of the Union Wage Differential on Management Opposition and Union Organizing Success

This paper argues that under current U.S. institutional arrangements, in which managements opposition to unions is as important as workers and unions,the magnitude of the union wage premium actually reduces organization rather than increasing it. It reduces organizing success by lowering profits, thus giving management a greater incentive to oppose unions. It shows that in the traditional monopoly model, any given premium can cause management to donate more resources to opposing a union than workers will donate to organizing. Empirical evidence from NLRB elections supports the model in which larger premiums induce greater opposition and thus reduce union organizing success.

On the Divergence in Unionism among Developed Countries

In this paper I explore the evolution of unionism in the 1970n and 1980s, when the post-oil shock world economy created a "crisis of unionism" throughout the western world. I try to explain why union representation of work forces fell in some countries but not in others and contrast union responses to the challenge of the period. I find that: -- Rates of unionization diverged greatly among developed countries -- The composition of union members shifted from private sector blue collar workers to public sector end white collar workers in all countries, producing increased divisions within union movements by category of worker -- Changes in the industrial composition of employment, changes in public attitudes toward unionism, and the growth of governmental protection of labor do not explain the divergence in density -- Differing rates of inflation contributed to the divergence, with unions doing better in countries with high inflation. In addition, unemployment raised density in settings where unions disperse unemployment benefits -- The primary reason for the divergence are differences in the incentives and opportunities different industrial relations systems give employers to oppose unions. Unions fared best in neo-corporatist settings and worst in settings where decentralized bargaining creates a strong profit incentive for managers to oppose unions and where management is relatively free to act on that incentive -- Union organizations and modes of operating changed significantly in some countries with declining or endangered unionism but not in others Most strikingly, my analysis indicates that if 1980s trends continue the west will be divided between countries with strong trade union movements operating in a neo-corporatist system, as in Scandinavia, and countries with 'ghetto unionism' limited to special segments of the work force, as in the United States.

The US Economic Model at Y2K: Lodestar for Advanced Capitalism?

The 1990s economic performance of the US suggests that the country may have the right mix of institutions and policies to be the peak capitalist economy in the new information economy. This paper develops criterion for judging peak status and examines whether the US fulfills these criterion. The US's employment and productivity performance make it a legitimate candidate for peak, but the record in distribution does not. As the late 1990s boom raised the wages of low skill workers, continued full employment will greatly strengthen the case for the US as peak economy. But with anything less than full employment the US economy will lose its luster. Even if this occurs, however, the US record in employing women and extending ownership to many workers deserves attention.

Who Escapes? The Relation of Church-Going & Other Background Factors to the Socio-Economic Performance of Blk. Male Yths. from Inner-City Pvrty Tracts

Using data from the NBER survey of Inner City youth and the National longitudinal survey of young men this paper examines the effect of church-going and other aspects of the background of youth their allocation of time, socially deviant behavior, and labor force behavior. 1)Church-going is associated with substantial differences in the behavior of youths, and thus in their chances to 'escape' from innercity poverty. It affects allocation of time, school-going, work activity, and the frequency of socially deviant activity.2)The diverse background factors examined in this study have different effects on various outcomes. Their differential effects suggest true causal impacts, with for example, the proportion of a youth's family working having positive effects on his labor market activity but not on other activities. 3) In addition to church going, the background factors that most influence'who escapes' are whether other members of the family work and whether the family is on welfare.4)The allocation of time and activities by youth is significantly influenced by market opportunities (or perceptions thereof). Those youths who believe it is easy to find a job are more likely to engage in socially productive activities than others. Youths who see many opportunities to make money illegally are less likely to engage in socially productive activities than other youths.

Labour Market Institutions Without Blinders: The Debate over Flexibility and Labour Market Performance

The debate over the influence of labour market flexibility on performance is unlikely to be settled by additional studies using aggregate data and making cross-country comparisons. While this approach holds little promise, micro-analysis of workers and firms and increased use of experimental methods represent a path forward. Steps along this path could help end the current 'lawyer's case' empiricism in which priors dominate evidence.

Should We Organize? Effects of Faculty Unionism on Academic Compensation

This paper uses the American Association of University Professors surveys for the period 1965 to 1976 to examine the effect of faculty unionism on faculty pay. It compares estimated effects of unionism on compensation from cross-section regressions of faculty pay on union organization and from a longitudinal model designed to correct cross-section estimates for "unobserved characteristics" of schools that are correlated with unionism. The major findings are that: 1. unionism raises faculty pay but that the extent of the effect varies greatly by estimating model and time period covered; 2.the years a school has been organized has a stronger effect on pay than the standard 0-1 union dummy variable; 3. unionism raises the fringe benefit share of compensation; 4. the estimated coefficient on faculty unionism in cross-section regressions overstates the union impact because unionized schools tend to have been higher paying even before organization.

How do Public Sector Wages and Employment Respond to Economic Conditions

This paper examines the changes over time in public sector wages and employment relative to private sector wages and employment using data from surveys of establishments and individuals. The paper finds that:(1) The pay of public sector workers relative to private sector workers varies greatly over time. Contrary to the view that public sector payis inflexible, variations in relative pay are due as much to fluctuations in public pay as to fluctuations in private pay.(2) The relatively high paid public sector worker of the early 1970s has within the span of a decade lost much of his or her advantage over otherwise comparable private sector workers, seriously denting if not destroying the picture of the 'overpaid' public employee which developed in the early 1970s.The group of public sector workers who tend to be most highly paid in the U.S. relative to private sector workers are blacks and women, suggesting that the public sector discriminates less than does the private sector.(3) Differentials in public and private sector pay vary greatly depending on the nature of comparisons, with for example Current Populations Survey comparisons of individuals with similar broad human capital showing federal employees to be higher paid than private employees and Bureau of Labor Statistics surveys of wage rates in particular occupations showing federal workers to be lower paid.(4) Public sector employment follows a very different pattern of change than private sector employment. It has smaller annual variation, and moves counter cyclically rather than cyclically. In terms of demographic composition the public sector employs relatively more blacks and women than the private sector.

Learning from Other Economies: The Unique Institutional and Policy Experiments Down Under

This paper argues that detailed studies of particular economies, such as Bob Gregory%u2019s work on Australia, are relevant to all of economics. The paper builds on the concept of a model species from biology to develop the notion of a model economy %u2013 one whose experiences illuminate fundamental economic issues; examines the criterion for an economy to serve as a model economy; and describes three areas %u2013 labour relations and the awards system of wage-setting, marketizing public services and growth through immigration and natural resources %u2013 where Australian experience provides insights into economic behaviour and the operation of markets broadly.

Searching for the EU Social Dialogue Model

The European Union and the United States operate different variants of market capitalism. The EU model uses social dialogue institutions to help determine economic outcomes, particularly in the labor market, whereas the US relies more on market forces. The theory of competitive markets provides a powerful framework for analyzing market driven economies and for assessing the conditions under which unfettered markets yield desirable outcomes. But there is no comparable framework for analyzing institution driven economies. This paper argues that models of efficient bargaining/the Coase Theorem offer the best framework for analyzing social dialogue economies and for identifying policies and institutional reforms to improve their functioning.